Credit growth at credit institutions in HCM City in November was among the highest in the year. — VNA/VNS Photo

HCM CITY — Total loans outstanding as of November 30 at credit institutions in HCM City were worth over VNĐ3.4 quadrillion (US$140.15 billion), a 1.3 per cent increase from the previous month, according to the central bank.

Nguyễn Đức Lệnh, deputy director of the State Bank of Vietnam (SBV)’s HCM City office, said the growth was among the highest in the year, and consolidated a rising trend.

He attributed the increase to three key factors seasonal demand, impact and effectiveness of the credit and monetary policies and action programmes by the banking industry.

Demand for capital is usually high during year-end as enterprises need money for production and distribution of goods for the peak shopping season and the public for purchasing, according to Lệnh.

Lending to businesses participating in the city’s market [price] stabilisation programme alone was worth VNĐ13 trillion ($537.59 million), and it was given to 24 companies at preferential interest rates of 4-6 per cent, greatly contributing to reducing costs for businesses and thus prevent prices of essential goods from spiking.

The SBV’s monetary, credit and interest rate policies continued to be effective, and the current low interest rate regime had encouraged borrowing for production, market expansion and consumption, he said.

The central bank’s allocation of credit limit s appropriately and rationally also had a positive impact on credit growth, enabling banks to exploit the year-end season well, he said.

Action programmes by the banking industry to support enterprises, including one to connect themselves, also promoted credit growth, he said.

He said 32 meetings were organised in the city this year to link banks and businesses, enabling 162,000 companies, business households and co-operatives to obtain preferential loans and restructure their debts.

Notably, the disbursed amount was 120 per cent of the credit packages lenders had registered at the beginning of the year, he said.

"If the year-end and the Lunar New Year are seasonal and short-term factors, factors related to monetary policies and implementation of solutions and action programmes are the fundamental and long-term bases that would promote credit and economic growth in 2024," he said.